Is it legally binding? Dear Sandeep, with regard to stamp duty, which sets the amounts and one must consult the relevant stamp rates of the state in which the document is executed. Stamp duty varies depending on the length of the loan, as well as quantum and type of loan. Dear guest, thank you for your clear instructions. I come from Europe and I had the pleasure of spending six months in India last year. It was there that I met a family that I want to help develop a business. I trust them and I think their business plan is solid. However, I would like to follow your advice and enter into a loan agreement to formally agree on conditions. Are there any special clauses that I should add as a foreigner lending money to the Indians? Thank you for your reply, Patrick So, he returns this amount directly to my bank, where my credit is available. Do I have to control or pay for legal issues by the income tax team? I want to give my relative 5 lakhs rupees on interest rates at 2% per month. So please offer me a loan with my money guarantee. I`m waiting for your answer.
Interest-free loans are not taxable in the hands of the lender or borrower. But if you calculate interest, then the interest they add up on loans should be treated as “income from other sources.” This income should be included in your income tax return (lender). I borrowed money from my father. If we both accept word-of-mouth propaganda for this loan and honor it, do we need a PN? In other words, is the borrowing of money by word of mouth legal as long as we do not have a dispute over this credit? Dear Venkat, 1 – The deliberate dishonour of the cheque can be challenged in court. Take a copy of the cheque before depositing in your bank. 2 – Yes. 3 – Yes. Hello, thank you for this beautiful article.
I made a request my friend with his brother-in-law needs urgent money and my brother-in-law friends have their own home, but unfortunately no bank is willing to grant them mortgages because they have not filed a payroll or income tax return.